Rupee settles 3ps higher at 83.44/$

Mumbai: The rupee appreciated 3paise against the US dollar on Tuesday, tracking a firm trend in domestic equities amid stable global crude oil prices. However, a strengthening American currency in the overseas market weighed on the local unit and restricted the up move, forex traders said. At the interbank foreign exchange market, the local unit opened at 83.46 and hit the intraday high of 83.41 and a low of 83.48 against the greenback during the session. It finally settled at 83.44 against the dollar, registering a gain of 3paise from its previous close.

On Monday, the rupee appreciated 10 paise to settle at 83.47 against the US dollar. “We expect the rupee to trade with a slight positive bias as positive domestic markets and a soft US dollar may support the rupee. However, a rise in crude oil prices and geopolitical tensions may cap a sharp upside. “Investors may remain cautious ahead of core PCE data from the US this week. USD/INR spot price is expected to trade in a range of Rs83.20 to Rs83.65,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 per cent higher at 105.50.